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Alibaba’s Sales Surge 40% and Profit Triples

By Denise Jia / Nov 02, 2019 02:43 AM / Business & Tech

Photo: VCG

Photo: VCG

Alibaba Group Holding Ltd. reported a 40% increase in sales in the third quarter as the Chinese e-commerce giant reached its 20th anniversary and continued to add users to its online marketplace.

For the quarter ended September 30, the Hangzhou-based company posted sales of 119 billion yuan ($16.9 billion), up from 85.15 billion yuan a year earlier. Sales beat the 117 billion yuan that analysts estimated, driven by strong growth in the core e-commerce and cloud computing businesses.

Alibaba’s net profit more than tripled to 70.75 billion yuan, or 27.51 yuan per American depositary share. Earnings included a significant one-time gain recognized on the receipt of Alibaba’s 33% equity interest in Ant Financial Services Group.

Excluding this one-time gain of 69.2 billion yuan and certain other items, non-GAAP net income was 32.75 billion yuan, an increase of 40% year-over-year.

Cloud computing revenue, though still a small fraction of the company’s overall business, soared 64% to 9.29 billion yuan during the quarter.

In September, the company had 785 million mobile monthly active users, an increase of 30 million from the end of June. Annual active consumers reached 693 million.

Alibaba aims to serve more than 1 billion annual active consumers and achieve more than 10 trillion yuan in annual gross merchandise volume by end of fiscal 2024, said Daniel Zhang, executive chairman and chief executive of Alibaba Group.

Contact reporter Denise Jia (huijuanjia@caixin.com)

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